The Director of the American Samoa Government Employees Retirement Fund testified yesterday that ASG didn’t have to repay the American Samoa Telecommunications Authority $17 million loan as early as it did.
The loan was to help fund the American Samoa branch of the Hawaiki Cable.
It was repaid in full by the American Samoa Economic Development Authority with interest of $1.8 million.
I’aulualo Talia Faafetai informed the House Telecommunications Committee that The Retirement Fund treated the loan as an investment and had confidence that the Hawaiki Cable would generate a lot of money.
He said their aim was to put the investment to work and generate a healthy return for the Retirement Fund. However he said for some reason then Governor Lolo Moliga decided that ASEDA would repay the loan right away with interest. And this was done.
I’aulualo said there was an agreement between the Retirement Fund and ASTCA that in return for its investment in the Hawaiki Cable whatever proceeds are made from the sale of Hawaiki’s 200 gigabytes of bandwidth the Retirement Fund would receive 25 %.
The Retirement Fund Board insisted this agreement be put into law. Hence a bill was enacted at the end of 2019 requiring ASTCA to pay 25% of any proceeds from the sale of Hawaiki Cable bandwidth to the Retirement Fund. The law earmarks this money to address the unfunded liability of the Retirement Fund. The law also earmarks 25 percent of Hawaiki Cable sales to ASEDA.
According to I’aulualo before this agreement they had asked for 25% of all ASTCA gross revenues because it wasn’t easy loaning the $17 million for the cable.
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Then Governor Lolo changed it to 25% of Hawaiki Cable sales only.
The first ASTCA payment to the Retirement Fund is June while the initial payment for ASEDA is not due until 2024.
